The MVRV coefficient – a key metric for assessing the cost of digital gold – fell to 1.8, which is close to a minimum of correction of 2024 at 1.71. Such observations were shared in Cryptoquant.
According to the calculations of experts, the indicated extremum indicator will reach in case of a decrease in the course of the first cryptocurrency to $ 70,000.
In their opinion, the market is currently “quite weakened” due to the lack of “paper” profit from most investors.
As a result, current quotes represent a favorable zone for the formation of an ascending movement without a further significant fall.
Analysts proposed to carefully monitor the following factors:
- The strength and value of the rebound.
- The movements of whales and changes in onchain-data during this period.
- Correlation with the stock market and economic trends.
Experts warned that current metrics indicate the presence of prerequisites for the rebound. They clarified that it is too early to make the final conclusion that digital assets have been included in a full -fledged bear cycle.
Recall that a number of analysts allows a decrease in bitcoin to $ 70,000 before subsequent recovery. Additional pressure on the course may expand the trade wars by the US Presidential Administration.
Earlier, Santiment allowed the depletion of the cryptocurrency market.
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Source: Cryptocurrency
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